Ford Can’t Stop Recalling Cars, Ruining Its Image

247wallst
2025.08.02 15:34
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Ford has recalled 321,000 vehicles due to a brake issue, adding to its record number of recalls in 2025, totaling 88 in the first half of the year. This has significantly impacted consumer confidence and Ford's financial results, with warranty costs reaching hundreds of millions. CEO Jim Farley acknowledged the competitive edge of Chinese EVs over US models, as Ford struggles with its EV sales and plans to announce a new strategy for the market.

During Ford’s (NYSE: F) year of endless recalls, it has just had another one. Yesterday, it recalled 321,00 vehicles for a brake issue. The action involved 2025 Lincoln Navigators, F-150, Expedition, Bronco, and Ranger according to the U.S. National Highway Traffic Safety Administration.

  • Ford’s Record Number Of Recalls
  • Hurts Consumer Confidence In Cars And Trucks
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The recalls just won’t stop. The Wall Street Journal reported early last month, “Ford Motor has recorded more safety recalls in the first six months of 2025 than any car company ever has in an entire calendar year.” Through June, the figure totaled 88.

The recalls have two major effects. The first is that in 2024, warranty costs totaled well into the hundreds of millions of dollars, which did a great deal of damage to Ford’ financial results. The other is that in the last year, Ford said it would improve its recall numbers. This year’s results show that was not true at all.

Without question, the recalls have to influence the way current owners and potential customers view Ford and its products.

The recent recalls have some when Ford is in trouble, even according to its CEO Jim Farley. Last month, he said that, after driving Chinese EV, it was clear that they had a huge advantage over US EVs. According to Business Insider, Ford’s CEO says Chinese EVs are far ahead of their US rivals on cost, quality, and technology.
According to Business Insider, ‘Asked about the rapid growth of Chinese electric car companies like BYD at the Aspen Ideas Festival, Ford CEO Jim Farley called it “the most humbling thing I have ever seen.”’

Ford has attempted to launch EVs through what it described as a $30 billion program. Its two flagship EVs posted horrible results in July. Sales of the Mustang Mach-E were only 5,306. Sales of the F-150 Lightning were 2,931.

Farley promised Ford would announce an entirely new plan to break into the EV market. It is almost impossible to think that is true.

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